Indonesia positions Bali SEZ as AI and Semiconductor Hub

Jakarta (ANTARA) - The Indonesian government is promoting the Kura-Kura Bali Special Economic Zone (SEZ) in Bali as a hub for artificial intelligence (AI) research and semiconductor development, leveraging expanding technological and economic ties with China.

Acting Secretary-General of the National SEZ Council and Deputy for Commerce and Digital Economy Coordination at the Coordinating Ministry for Economic Affairs, Ali Murtopo Simbolon, highlighted the zone's strategic role in promoting tech innovation.

”Amid global competition and uncertainty, Indonesia offers a secure environment for academic development and industrial collaboration,” Ali said in a statement on Sunday.

“The Tsinghua Southeast Asia Center (TSEA) can serve as a bridge connecting China, Southeast Asia, and the rest of the world," he added.

At the Kura-Kura Bali SEZ, the Tsinghua Southeast Asia Center has already introduced foundational research programs in physics and neuroscience, alongside launching a dedicated semiconductor forum in partnership with Beijing's Tsinghua University.

Future initiatives aim to scale up digital research and development, AI applications, and broader digital economy projects.

The tech ecosystem's development is supported by growing Chinese business participation across Indonesia's SEZs. As of the second quarter of 2026, 97 of the 481 tenant entities operating within Indonesian SEZs were Chinese enterprises.

Nationwide, Indonesia operates 25 SEZs covering approximately 23,797.88 hectares. These zones have recorded cumulative investments of US$ 20.7 billion, involving 481 business entities and generating over 283,000 jobs.

Meanwhile, as of the first half of 2026, the Kura-Kura Bali SEZ recorded cumulative realized investments of Rp1.8 trillion (around US$ 101.12 million), created 2,173 jobs and welcomed 131,657 visitors.

To further strengthen industrial integration, Jakarta and Beijing are expanding partnerships through the Two Countries Twin Parks (TCTP) initiative.

The framework pairs Indonesia’s vast natural resources and market scale with China’s investment capital and technological expertise to build high-value manufacturing and digital infrastructure.

Ali said that future cooperation between Indonesia and China should extend beyond investment to include technology transfer, joint research, human resource development, and national industrial capacity building.

Related news: Indonesia's Luhut invites Tsinghua University to AI research in Bali

Translator: Bayu Saputra, Yashinta Difa
Editor: Bayu Prasetyo
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